Geithner Urges Congress To Raise US Debt Limit!!!!6th time in less than 4 years!!!!!!

Discussion in 'Wall St. News' started by S2007S, Jan 6, 2011.

  1. S2007S


    Good old geithner at it again, seems the only solutions he has is to keep on spending!!!!

    Here we are closing in on debt ceiling once again, the answer to the problem, raise it for a 6th fucking time in four years. Don't any of you fools comprehend what is going on, they have no fucking answers to the problem, the only answers they have is to increase the debt limit and borrow more. How could anyone possibly think the economy is heading in the right direction when all they do is spend trillions and raise the debt ceiling every single year!!!! I don't comprehend how the system works when it sits under conditions such as these. What they are doing is raising the debt ceiling so that they can just borrow more money to prop up the economy and spend it on more useless programs that we can no longer afford!!!!

    How about instead of raising the debt ceiling they cut spending, OHHHH I forgot, that's not going to happen because if it did the economy would go into another collapse because the only thing left for this economy to sustain itself is worthless trillions being pumped out by Bubble ben bernanke and friends!!!!!

    Is it called a CEILING for a reason? Anyone know of a ceiling that gets raised on a regular basis.....

    So does anyone really believe they will let this debt default, Fuck no they wont, they will raise the debt ceiling once again just like they have done the last 5 times. Where is the lesson being learned, this isn't the way economics 101 is taught. Everything they are doing is completely wrong, this credit crisis is here today because of the methods used to get out of past recessions didnt work and the same thing is happening now with this crisis, everyone is made to believe all this spending is working but in reality its just creating another crisis.

    * JANUARY 6, 2011, 11:00 A.M. ET

    UPDATE: Geithner Urges Congress To Raise US Debt Limit

    By Meena Thiruvengadam and Jeffrey Sparshott

    WASHINGTON -(Dow Jones)- As the U.S. approaches its debt limit of nearly $14.3 trillion, Treasury Secretary Timothy Geithner is pushing lawmakers to lift that ceiling for the sixth time in less than four years.

    Failure to raise the debt limit could "precipitate a default by the United States," Geithner said in a letter to lawmakers Thursday. A U.S. default could have catastrophic economic consequences potentially more harmful than the financial crisis was in 2008 and 2009, he wrote.

    Lawmakers last increased the debt ceiling almost a year ago. But by Monday, the federal debt subject to that ceiling stood at around $13.95 trillion, giving the government just $355 billion before it would be legally prohibited from borrowing to pay its financial obligations.

    The government is expected to hit its debt ceiling during the second quarter of this year, and Geithner is pushing for Congress to approve a debt-ceiling increase in the first quarter.

    In his letter, he said deep spending cuts would only delay reaching the ceiling by no more than two weeks.

    A Treasury official said that, despite the ongoing debate over the ceiling, the administration expects Congress to do "the responsible thing," as it has in the past. "Our view is that it needs to get done, it will get done," the official said.

    Failure to raise the U.S. debt ceiling could cast doubt on the U.S. government's ability to meet its obligations and send shockwaves through the bond market.

    "Default would have prolonged and far-reaching negative consequences on the safe-haven status of Treasurys and the dollar's dominant role in the international financial system," Geithner said in his letter.

    A Treasury official described the request for the increase as routine but, with a more heavily Republican congress this year, it has become a more politically charged issue.

    Many conservative candidates ran election campaigns criticizing their opponents for voting to lift the debt ceiling last year, and promised to vote against another increase when federal borrowing hits the current cap. Their promises likely will be tested in the coming weeks. The U.S. House of Representatives agreed Wednesday to change voting procedures on increasing the nation's borrowing limit. The new policy means that lawmakers will be forced to go on record in support of raising government borrowing or vote "no" and risk putting the U.S. into default.

    Previously, Congress had approved debt limits automatically as part of the budget resolution.

    -By Meena Thiruvengadam, Dow Jones Newswires
  2. S2007,

    Good points but we do have to part with conventional thought. We'll be so wrapped up in "outrage" we'll be blinded and miss opportunity. It is what it is, this is the current course of action whether we like it or not, whether is sensible is another question but we must part from what is "supposed" to happen.
  3. Why not stick with what works?

    We've been hearing of imminent catastrophe on the debt, since Reagan.

    We only have to pay about 4% to borrow 30 year money in the U.S.

    "La Catastrophe" has never happened.
  4. Paulson leaves the post. Geither Urges Congress to Rasie Debt limit.

    Been trading Rice today. Rice is higher

    Been watching Agi's, all base agi's are rising fast.

    Energy, I think will be at 60 before end of the year, is rising faster.

    Home prices have a risk of Housing droping again. Most "True" wealth in the US is based or was based in homes. Housing was the ATM for the middle class. Now we have a Glut and prices are looking to fall even more.

    Asia, Brazil, are looking to have Yuan as a "challange" to the dollar for global trade.

    Trillions of US net worth is overseas and will not return to invest in the US due to Tax Reasons. Thus, a loss of "Investment" capital over the last 3 years.

    And we are looking at a serious possiblity of massive inflation as the FEDS continue to keep the interest rates artifically at or below Zero.

    Congress will raise the Debt limit. That is a given. Question is, with all that is going on, how are you gona make money? That is the bottom line. The ship is sinking but plenty of "treasure" to take to the life boat.

    The next year will seperate the Men from the boys.
  5. "La Catastrophe:


    First, your not thinking clearly. LA CATASTROPHE is upon us now. I'm not sure what you do for a living, but I have been a trader for 10 years and in Private Equity for over 6 years and now trading along with Private Equity for about a year.

    The fall of LEH, B.S. was just the begining. The Housing collapse, unemployment (although IMHO most of it is Structural at this point), the rise of Commoditties in the last year, and the fact that Trillions in investment dollars has fleed the US is the start of the CATASTROPHE.

    There is very little faith in the US DOLLAR. The only people who have faith in the Financial System of the US is, PUNDITS and people who are not knee deep in the Global Financial Community.

    Due to the fact that I raise Millions upon Millions for Oversea's investments, just recently, to calm the nerves of clients outside the US, we started to hold Investment Cash in Foreign Currency Baskets untill it is used for "Said" projects it was raised for.

    Many clients have expressed their concern about holding "Dollars".

    ALso, for most Americans who do not travel abroad, have no idea how much the dollar has fallen. Forget the actual number, but the purchase power decrease is felt when you take dollars overseas.

    As long as the Idiots in America, stick their head in the sand and spend their dollars domestically, Inflation will not really hit them until its to late, the CATASTROPHE is much like Mr. Rearden's point of the "Frog in the pot". The slow turning up of the heat, the Frog will stay in the Pot of water until death. Well guess what, that is 99% of the Citizens are doing, sitting in their nice pot of water, thinking things are not bad, things are getting better while the heat is slowly turning higher and higher.

    Bottom line, the CATASTROPHE for most will be a decade of struggle. For the few it will be a money making opportunity not seen since the 1900s.

    But do not be the Fool who Parts with his money all the while drinking wine, singing and dancing.

    The country will not "collapse" into a Greece style revolt because the American people for the most part, do not understand what is going on and they do not have the will to Fight or change their habbits.

    However, QE 3 is coming and the Downgrade of US Tres. is around the corner. But remember, Moody's isn't going to downgrade the US. China has already slowed her purchase of Debt, the Asian money tree is all but ended for the US. The rest of the world will shun US Debt.

    IMHO, March/April will be the first real crack in the system as Muni's fold. Not sure how many but there will be some majors. Once this happens, the roll out effect will reach out beyond the US and into the already Weak EU.

    The pain has just started. Japan had it easy with their lost Decade. US will have it far worse for the simple fact, the "Ways" will not change. And that fact alone will make millions for the right thinker who takes advantage of Human Nature.
  6. I bet Republicans will chicken out and approve raising the debt ceiling.

  7. rew


    Just how long do you think there will be fools who will lend to a bankrupt government at 4%?
  8. EPrado


    Millions upon millions huh?

    Just like you were one of the bigger traders at Schonfeld in Chicago.

  9. S2007S


    Of course they are going to chicken out.

    Its a fact and it will happen, the DEBT CEILING WILL BE RAISED without QUESTION!!!

    Why its even being mentioned is beyond me, ITS going to be raised by March 2011 to over $15.5 Trillion!!!!

    No one has an idea how negative this is going forward but this will be ignored just like the credit crisis was until one day the whole system collapses.
  10. US is mostly a war economy..with millions working in the military and dept of defense and policing etc.

    and prisons are booming.

    the reality is 50% of gov't budgets can be eliminated and you see no change in gov't services.

    Cuba is laying off 1 millon civil employees..

    the welfare state..if taxpayers can't or won't pay for it why spend it..

    50% of gov't employees are dead wood. you don't need it. the debt can only be repaid if gov't stops having these 1 trillion annual deficits. in 10 years debt increased by how much... who said less gov't is better gov't
    #10     Jan 6, 2011